Sherwin-Williams Co (SHW)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,527,400 | 3,562,000 | 3,429,500 | 3,138,500 | 2,963,900 | 2,754,500 | 2,470,700 | 2,540,600 | 2,583,300 | 2,776,200 | 3,040,500 | 2,973,300 | 2,859,600 | 2,654,100 | 2,490,300 | 2,419,700 | 2,331,100 | 2,141,398 | 1,854,505 | 1,721,194 |
| Interest expense (ttm) | US$ in thousands | 417,500 | 431,200 | 430,500 | 411,700 | 390,800 | 367,400 | 349,300 | 339,900 | 334,700 | 332,600 | 332,800 | 337,400 | 340,400 | 341,400 | 343,400 | 344,500 | 349,300 | 354,865 | 361,846 | 366,153 |
| Interest coverage | 8.45 | 8.26 | 7.97 | 7.62 | 7.58 | 7.50 | 7.07 | 7.47 | 7.72 | 8.35 | 9.14 | 8.81 | 8.40 | 7.77 | 7.25 | 7.02 | 6.67 | 6.03 | 5.13 | 4.70 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,527,400K ÷ $417,500K
= 8.45
The interest coverage ratio of Sherwin-Williams Co. has shown a consistent and strong performance over the past eight quarters. The ratio has ranged from 7.10 to 9.21, indicating the company's ability to meet its interest obligations comfortably through its operating income. This consistent level of coverage suggests that the company has a solid financial position and is effectively managing its debt obligations. Overall, Sherwin-Williams Co. appears to be in a favorable financial position in terms of its ability to cover interest expenses.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Sherwin-Williams Co
SHW
8.45
Fastenal Company
FAST
141.92
Tractor Supply Company
TSCO
31.80